STUART Pearce believes Manchester City's high-rise start to the Premiership campaign will prove to be a major aid when the transfer window opens in January.

City head to Arsenal tomorrow in fourth spot, four places above their injury-hit hosts and with their best chance of winning at Highbury since their last success three decades ago.

Even Pearce doubts whether the Blues can cling on to a Champions League berth, but a UEFA Cup spot is a realistic aim, especially if he can reinforce his squad in the new year.

Aside from bringing in Andy Cole and Darius Vassell and also extending Kiki Musampa's loan period for an extra season, Pearce found it difficult to recruit new faces during the summer.

High-profile targets like Steed Malbranque and Stelios Giannakopoulos turned the Eastlands outfit down, with many players sceptical whether the positive impact Pearce had on the club when he succeeded Kevin Keegan as manager could be sustained.

Those doubts have now been dispelled, with City's longest unbeaten run in nearly 30 years only ending against Bolton at the end of last month.

And, if the form can be sustained, Pearce is confident he will have more success when the transfer market reopens.

"Our league position is an important bargaining tool," he said.

"Players in this country are aware of Manchester City, who we are and what we stand for.

"Players elsewhere in Europe don't know about the stadium of the fan base. All their knowledge comes from looking at a league table and seeing where we are.

"Some of those we were talking to in the summer said they wanted European football, so the higher I can put this club up the league, the more clout I will have when negotiations start."

Pearce has spent the last few months scrutinising potential targets.

Shrewsbury keeper Joe Hart is among those he is keen on, while the possibility of another bid for Malbranque cannot be discounted even though Pearce's presence at Fulham's encounter with Charlton on Monday was mainly to spy on forthcoming opponents.

"I am always open-minded about good players and Steed Malbranque is a good player," he said.

"We are looking right across the spectrum, at Bosmans and players we would have to pay a fee for. That has been the case since the day I took the job.

"We are short in terms of numbers and we have been exposed on a couple of occasions when we have picked up a few injuries in certain positions."

So far though, the majority of Pearce's business has been in the contract extension department.

Favourite

This week alone Antoine Sibierski extended his stay at City by another year, while young midfielder Stephen Ireland has verbally agreed a new two-year deal.

However, talks with Andy Cole will not begin for a few months yet.

The former Manchester United striker has already become a firm favourite with the Blues faithful and indicated a desire to stay with the club beyond next summer prior to his two-goal salvo against West Ham last weekend.

If Cole maintains his current form, a contract offer is automatic, but, as with any 34-year-old, Pearce is adopting a cautious approach.

"I had a chat with Andy earlier this week," revealed the former England skipper.

"We are both quite honest people and it suited both him and us not to resolve anything on the contract side until the end of the season.

"Performances are not a problem and neither is ability - it is managing the slight niggles.

"We have already lost him for three matches this season and he has only played 10, so I have my fingers crossed we can keep him fit and he can carry on scoring goals and winning games for us."

Cole is assured of his place alongside Vassell in Pearce's starting line-up at Arsenal, the club where he started his professional career.

But any talk Cole's impressive form can instigate a return to the international fold, and a place in Sven-Goran Eriksson's World Cup squad, has been dismissed out of hand.

"I wouldn't suspect he will get any England call and I don't think Andy suspects it either," said Pearce.